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Cloud technology spending on the rise

Published: May 10, 2016

The amount of money spent on cloud computing is set to increase, according to new findings.

A report by the International Data Corporation (IDC) found that total spending on IT infrastructure products (server, storage, and Ethernet switch) for deployment in cloud environments will increase by 18.9 per cent in 2016 to reach $38.2 billion (£26.73 billion).

However, the research also found that spending on enterprise IT infrastructure deployed in traditional, non-cloud, environments will decline by four per cent in 2016. This will still account for the largest share, 62.8 per cent, of end user spending.

Figures published by the IDC found that private cloud infrastructure spending will be up 11.1 per cent to $13.9 billion in 2016, with public cloud delivering growth of 14.1 per cent to $24.4 billion.

In addition, the study found that spending on public cloud IT infrastructure will increase by 14.1 per cent this year to $24.4 billion.

Speaking about the findings, Natalya Yezhkova, research director at Storage Systems, said: “For the majority of corporate and public organisations, IT is not a core business but rather an enabler for their core businesses and operations.

“Expansion of cloud offerings creates new opportunities for these businesses to focus efforts on core competencies, while leveraging the flexibility of service-based IT.”

The IDC found that investments in cloud IT infrastructure will grow across all regions.

Furthermore, as providers continue to expand their portfolio of offerings and customer reach, the public cloud segment will deliver the highest rate of IT spending growth in a majority of regions compared to private cloud and non-cloud environments.

Mitrefinch offers cloud solutions that can offer firms a more innovative way to use and store employee data as part of their long-term strategy.

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